Sears 2012 Annual Report Download - page 88

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
88
Sears Canada
January 29,
2011
Balance
Net Realized and
Unrealized
Gains/(Losses) Purchases Sales and
Settlements
Net Transfers
Into/(Out of)
Level 3
January 28,
2012
Balance
millions
Fixed income securities:
Corporate bonds and
notes . . . . . . . . . . . . . . . $ 2 $ — $ — $ — $ (2) $ —
Mortgage backed-and
asset-backed . . . . . . . . . 69 5 — (10) — 64
Hedge and pooled equity
funds . . . . . . . . . . . . . . . . 113 (3) — (94) — 16
Total Level 3 investments. . $ 184 $ 2 $ — $ (104) $ (2) $ 80
NOTE 8—EARNINGS PER SHARE
The following tables set forth the components used to calculate basic and diluted earnings (loss) per share from
continuing operations attributable to Holdings' shareholders. Restricted stock awards for 2012 and 2011 were not
included in the computation of diluted loss per share from continuing operations attributable to Holdings'
shareholders because the effect of their inclusion would have been antidilutive.
millions, except earnings per share 2012 2011 2010
Basic weighted average shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105.9 106.8 111.5
Dilutive effect of restricted stock and stock options . . . . . . . . . . . . . . . . . . . . — — 0.2
Diluted weighted average shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105.9 106.8 111.7
Net income (loss) from continuing operations attributable to Holdings'
shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(930) $ (3,113) $ 122
Earnings (loss) per share from continuing operations attributable to
Holdings' shareholders:
Basic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(8.78) $ (29.15) $ 1.09
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(8.78) $ (29.15) $ 1.09
NOTE 9—EQUITY
Stock-based Compensation
We account for stock-based compensation using the fair value method in accordance with accounting
standards regarding share-based payment transactions. We recorded $15 million, $14 million and $9 million in total
compensation expense relative to stock-based compensation arrangements during 2012, 2011, and 2010,
respectively. At February 2, 2013, we had $10 million in total compensation cost related to nonvested awards, which
is expected to be recognized over approximately the next three years.
We do not currently have an employee stock option plan and at February 2, 2013, there are no outstanding
options.